Lument Finance Trust, Inc. · NYSE:LFT
Lument Finance Trust — Five Oaks Investment — Q2 2017 Earnings Presentation
10 slides from Lument Finance Trust's earnings presentation, Aug 7, 2017
Slide 1: Second Quarter 2017 Earnings and Performance Highlights Presentation
Investment Corp. Second Quarter 2017 Earnings and Performance Highlights Presentation August 7, 2017
Slide 2: Safe Harbor Statement
Safe Harbor Statement Confidential 2 This presentation includes "forward - looking statements" within the meaning of the U . S . securities laws that are subject to risks and uncertainties . These forward - looking statements include information about possible or assumed future results of the Compan
Slide 3: Performance Highlights: Second Quarter
Performance Highlights: Second Quarter 3 • On June 21 , 2017 we completed an underwritten public offering of 4 , 600 , 000 shares of common stock, including 600 , 000 shares upon the exercise in full of the underwriters’ over - allotment option, for estimated net proceeds of $ 19 . 8 million • We be
Slide 4: Market Observations
Market Observations: Second Quarter 2017 4 • The treasury yield curve flattened in the second quarter as the Trump reflation expectation receded and quantitative easing in the EU and Japan kept a lid on long rates in the U . S . • The USD 2 / 10 ’s spread narrowed 30 bps to a low of 78 bps • On June
Slide 5: Investment Strategy
Investment Strategy 5 Confidential • As we communicated previously, we intend to focus on a business strategy that is simpler to understand and more cost efficient • We have moved to an “expense light” investment strategy and have reduced the C ompany’s run - rate expenses by approximately a third •
Slide 6: ARM and Credit Portfolios
ARM and Credit Portfolios 6 • Our 2 Q 17 Agency ARM Portfolio has a three month CPR of 8 . 6 % • Our weighted average coupon is 2 . 57 % • Our weighted average purchase price is $ 102 . 10 • Lower coupon and dollar price hybrids benefit from “roll down the curve” • To date, we have not experienced a
Slide 7: Core Earnings Analysis: GAAP to Core Earnings Reconciliation
Core Earnings Analysis: Second Quarter 2017 7 Confidential GAAP to Core Earnings Reconciliation Three Months Ended June 30, 2017 Reconciliation of GAAP to non-GAAP Information Net Income (loss) attributable to common shareholders $ (3,167,297) Adjustments for non-core earnings Realized (Gain) Loss o
Slide 8: Portfolio Analysis: Second Quarter 2016 vs. 2017
Portfolio Analysis: Second Quarter 2016 vs. 2017 8 Confidential 1.84% 75.43% 3.33% 3.83% 13.42% 1.61% 0.55% 2Q 2016 Agency Fixed Agency ARMs Legacy Non-Agency RMBS 2.0 Multi-Family MBS Residential Whole Loans Mortgage Servicing Rights 0.08% 95.05% 0.37% 3.97% 0.22% 0.32% 2Q 2017 Agency Fixed Agency
Slide 9: Illustration of Newly Invested Capital
Illustration of Newly Invested Capital 9 Confidential Baseline Asset Yield (Including Roll) 1 2.69% Less: Hedged Funding Cost 1.35% Net Interest Margin 1.34% Leverage 8.5x Spread Income 11.39% Gross ROE 14.08% Less: Management Fee 0.75% Net ROE 13.33% 1) Approximately 15 basis points of spread and c
Slide 10: End of Presentation
End of Presentation 10 Investment Corp. Investment Corp. Second Quarter 2017 Earnings and Performance Highlights Presentation August 7, 2017